You can get a good 2.1 megapixel camera for under $300.00.
I have a three year old Fujifilm 1.3 megapix and it still works great!
If you're just going to post pictures on the 'net, then even a 1.3 megapix camera is fine. Just make sure you can make adjustments in resolution, like 640x480 to 1280x960.
Click on my car below: my pelican photo gallery has pics from my 1.3 digi camera, to give you an idea. The pictures are 640x480.
Also: I recommend staying away from the Sony cameras: they use their own proprietary 'memory stick.' Other manufacturers that use the Smart Media card (and other media types) are little more flexible in that more companies product them. (Read: competition brings the price down!)
-Zoltan.
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